Hedera Hashgraph’s native token, HBAR, has witnessed a notable decline of 7% over the past week, indicating a deterioration in investor sentiment and a waning demand for the altcoin across the broader market. This bearish trend has raised concerns among analysts regarding the token’s future performance.
Recent on-chain data highlights a significant decrease in liquidity within the Hedera network. Analysts point to a growing pessimism among HBAR holders, which, combined with falling liquidity, may exert additional downward pressure on the token in the near term.
According to data from DefiLlama, the market capitalization of Hedera’s stablecoin has suffered a dramatic 53% drop within just one week, falling to approximately $70 million. This sharp decline is indicative of a substantial liquidity exit from the network, which typically reflects decreased on-chain activity. The reduction in stablecoin presence suggests a drop in participation within the Hedera ecosystem, leading to lower transaction volumes.
The implications for HBAR are significant; the diminished liquidity raises the possibility of further downward price action as demand within the Hedera ecosystem continues to wane. In addition, HBAR’s weighted sentiment is currently recorded below zero, at -1.08, suggesting a pronounced bearish sentiment among traders and community members. This sentiment metric assesses the ratio of positive to negative remarks surrounding an asset by combining discussions’ volume with their tone. A reading above zero would indicate optimism, while a value below zero shows predominance of negative sentiment.
Given the current weighted sentiment, there appears to be a lack of enthusiastic buying interest in HBAR, which could exacerbate its downward momentum. As HBAR trades at approximately $0.225, it hovers just above a critical support level at $0.212. Analysts are observing this level closely; a breach below this support could trigger further declines, potentially bringing the price down to $0.192.
Conversely, should there be a resurgence in demand, it could counteract this bearish outlook. A rebound in buying pressure could lift HBAR towards the $0.232 mark, providing some respite from its current downtrend. As traders and investors keep a close watch on market movements, the coming days will be pivotal for determining the future trajectory of HBAR.
